http://www.bloomberg.com/apps/news?pid=20601109&sid=aDmUKZXaaFlg&refer=home
The article attached above excellently debunks the myth that biofuels derived from food sources were the primary driver of food prices globally, even if the primary source is a spokesman for the Renewable Energy industry. I want to reiterate that I do not support food-to-fuel initiatives, nor have I pursued such in my business ventures, given long-term demographics calling for a population increase to 9 billion by 2030 which will require every unit of available food for human consumption. But, I also must clarify the inaccurately held views by many that wholely equate the sharp rise in prices for foodstuffs with corn- or sugar- based ethanol or soy-based biodiesel production because they tarnish public opinion on biofuels in general.
Food-based fuel represents the past decade+ of technology development; my work has exposed me to current and forward-looking technologies such as cellulosic ethanol, which derive fuel from non-food-based inputs such as agricultural waste (corn cobs, sugar cane husk) or municipal solid waste (garbage). I believe that as long as the combustion engine commands the bulk of the vehicular market, these technologies will increasingly contribute to domestic fuel, keep dollars in circulation in local and regional markets, and reduce the adverse effects of garbage accumulation.
The larger point in the article is that commodity prices for corn have dropped precipitously while production of ethanol from corn has increased! As noted, it was demand, speculation, and high energy costs that drove food prices higher, not simply food-to-fuel entities. The curiosity of the 'Chart Link' on that page is that food prices have not dropped nearly as significantly as commodity prices in the past four months. Biofuels include a wider range of fuels than many realize and are simply one element in the fluctuations of global food prices.
One sidenote: Bush attempted unsuccessfully to privatize Social Security especially in his second term. The article attached below, regarding losses sustained by Israel's retirement funds, is a potential outcome when potential greed in the private sector is allowed access to the public's retirement coffers.
http://www.bloomberg.com/apps/news?pid=20601109&sid=aawaWZBTZNQE&refer=home
As it is, here in the US, our companies' and governments' commitments to actually funding pensions has become far from dependable, in and of itself, to put it mildly. I am still thankful Bush's initiatives failed.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ahb6gcv6yWcs
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Alok - your comment that corn prices have dropped while ethanol production has increased resonates with a 60 Minutes story on Sunday explaining that the insane fluctuation of oil prices last year could not have been based on pure supply and demand. It's becoming increasingly clear that market speculation on commodities is what drove the spike in both oil and food costs. Yet another case for broader and more effective market regulation - it's bad enough that big investors continued to rake in cash last year while everyone else suffered. But it's downright disgusting that they did so by speculatively gambling on the costs of basic items people need to survive.
-Owen
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